Salsa Grocery has two divisions
Salsa Grocery has two divisions. One division, STORES, sells groceries through traditional grocery stores. The second division, CYBER, was formed two years ago and sells groceries through an online grocery ordering service. Data for the past year for the two divisions are as follows:
STORESÂ Â Â Â Â Â Â Â Â Â Â Â CYBER
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        $120,000,000     $15,000,000
Current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              4,500,000         2,500,000
Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            10,000,000         1,000,000
Weighted-average cost of capital . . . . . . . . . . . . . . . . . . . . . .                       8%                  10%
a.       Evaluate the two divisions in terms of EVA.
b.       Explain why it might be better to evaluate the CYBER division in terms of a balanced score- card rather than just focusing on EVA.
c.       Identify at least one measure from each of the business process and customer perspectives of the balanced scorecard that could be used to evaluate the performance of CYBER.
Answers
Status NEW
Posted 10 May 2017 08:05 AM
My Price 10.00
-----------
Attachments
file 1494404245-1324249_1_636299425041224764_EVA-vs-Balanced-score-card-approach.xlsx preview (308 words )
13-----------242-----------49&-----------amp-----------;am-----------p;i-----------nfo-----------Id=-----------477-----------392-----------EVA----------- vs----------- Ba-----------lan-----------ce -----------sco-----------re -----------car-----------dSa-----------lsa----------- Gr-----------oce-----------ry -----------has----------- tw-----------o d-----------ivi-----------sio-----------ns.----------- On-----------e d-----------ivi-----------sio-----------n, -----------STO-----------RES-----------, s-----------ell-----------s g-----------roc-----------eri-----------es -----------thr-----------oug-----------h t-----------rad-----------iti-----------ona-----------l g-----------roc-----------ery----------- st-----------ore-----------s. -----------The----------- se-----------con-----------d d-----------ivi-----------sio-----------n, -----------CYB-----------ER,----------- wa-----------s f-----------orm-----------ed -----------two----------- ye-----------ars----------- ag-----------o a-----------nd -----------sel-----------ls -----------gro-----------cer-----------ies----------- th-----------rou-----------gh -----------an -----------onl-----------ine----------- gr-----------oce-----------ry -----------ord-----------eri-----------ng -----------ser-----------vic-----------e. -----------Dat-----------a f-----------or -----------the----------- pa-----------st -----------yea-----------r f-----------or -----------the----------- tw-----------o d-----------ivi-----------sio-----------ns -----------are----------- as----------- fo-----------llo-----------ws:-----------STO-----------RES-----------CYB-----------ER$-----------Tot-----------al -----------ass-----------ets----------- . -----------Cur-----------ren-----------t l-----------iab-----------ili-----------tie-----------s ----------- Ne-----------t i-----------nco-----------me -----------(lo-----------ss)----------- -----------.We-----------igh-----------ted------------av-----------era-----------ge -----------cos-----------t
Not Rated(0)